For UWCU, Excellence in Indirect Lending Resulted in Significant Growth

by Breanna Wallace
For UWCU, Excellence in Indirect Lending Resulted in Significant Growth

Indirect lending provides credit unions with the unique ability to offer a convenient method of financing to members, while also having the opportunity to grow their member base. As one of the fastest growing loan segments for credit unions, this is an important way for them to diversify and deepen their loan portfolio.

Credit unions have an increasingly strong presence in the auto-lending marketplace, and providing members with a convenient path to an auto loan at the dealership is essential to continue this growth.

See how one credit union’s focus on indirect lending provided them with significant growth in 2017 and positioned them for even more growth in the future. CU Direct sat down with University of Wisconsin Credit Union, the winner of our 2018 Excellence in Indirect Lending Award, to discuss how they grew and diversified their indirect loan portfolio and more than doubled the amount of loans they saw in the previous year.

Their strategy was well thought out: they increased staff, expanded underwriting hours, and aimed to use their indirect program through the CUDL platform as a member acquisition channel. By working only with dealers that aligned with UWCU’s core values, identifying potential frictions with dealers, and emphasizing deal quality and efficiency, their focus and effort paid off.

Here’s a snapshot of their accomplishments:

– 206% increase in indirect loan growth over previous year
– 94% increase in Funded Loan volume
– 84% increase in applications
– Increased Look-to-Book ratio by 6.7%
– Lowered Underwriting turnaround to 7 minutes

Find out more by watching their story.

About the Author

Breanna Wallace
Breanna Wallace is the Digital Marketing Writer at CU Direct.